Case Study 7-1. Amazon.com </o:p>
No company exemplifies the new business era of the Internet more than Amazon.com. What started out as a book company emerged as a serious competitor to dozens of industries. If founder and CEO Jeff Bezos achieves his vision, “Amazon.com will be a place where you can find anything.” Given the activities, expansions, and successes to date, Amazon is making significant headway on its ambitious plans to take over the entire e-commerce e-tailing world.</o:p>
Amazon.com started in 1996 selling books over the Internet. Since that time, the company pioneered many of the innovations that define electronic shopping, such as one-click shopping, customer reviews, affiliation programs, and online gift-wrapping. It was the first site for customers to actually buy anything over the Internet. It is the largest seller of online books, music, and videos. It went public in 1997, and the stock price eventually rose from $1.50 a share into the heady triple digits.</o:p>
To increase the number of customers to its site, Amazon.com established an affiliation program that awards other sites a percentage of the sale when customers are linked from their site to Amazon.com to make a recommended purchase. A customer visiting the Amazon.com site is greeted with a busy Web page showing key specials that day, and giving opportunity to navigate to the type of product the customer wants to buy. If books are the purchase to be made that day, the customer can click on the books link, and search for a book by title, author, or subject. So far, the scenario is not much to get excited about, but the power behind the Amazon.com business model is not yet shown. If a customer searches for a particular book, not only does Amazon.com’s site give the details of the book, but potential buyers can read the table of contents, look at comments written by other readers of the book, and link to other books of a related topic or by the same author. Comments give a sense of community to the Amazon.com site where customers can contribute or read comments easily. Further, the Amazon.com systems track purchases of the book at hand, and can tell the new customer of other books purchased by those who purchased the current book. Their “suggestions” are based on real data culled from an extensive database of transactions, making the suggestions that much more relevant to the current customer.</o:p>
The purchasing transaction is innovative, too. The standard process lets customers add a selection to their shopping cart and either continue shopping or finish out the transaction. Shipping options are presented and purchases are paid for with credit cards. If the customer is a repeat customer, the system already has payment and shipping information, and the purchase can be quickly made with a single “click” of the mouse. E-mail is sent to the purchaser at several points along the process, including a confirmation that the order was received and a notice of the shipping of the order. E-mail is also automatically generated to alert customers of specials related to purchases they made, such as a new book by a favorite author. By combining a transaction system with real time information, customer connections and dissemination systems make retailing on the Web, or e-tailing, a different experience from traditional buying at the local bookstore or mall.</o:p>
Bezo’s vision is for Amazon.com to be the center of the e-commerce world. That goal means selling or at least locating books, videos, CDs, electronics, pet food, housewares, garden supplies, games, or whatever a shopper on the Internet wants to buy. The company also offers an online auction. In mid-1999, Amazon.com announced two more e-tailing options. All Product Search is a product browser that helps customers locate items at Amazon.com, its partners, or anywhere on the net. Amazon.com hosts Z-shops, an online mall, where anyone or any company can set up a store, by paying a small monthly fee and commission. In return, these stores gain potential access to the 25 million customers of Amazon.com. It now also hosts online operations and fulfillment for more established retail rivals like Toys “R” Us, Target, and Circuit</st1:placename> City</st1:placetype></st1:place> in return for a percentage of sales, per-unit payments, or periodic fixed payments. For example, in their partnership with Toy “R” Us, the toy company provides the product while Amazon.com sells and delivers it. This partnership suggests that Amazon realizes it can’t compete outside its core markets without significant help and Toys “R” Us acknowledges that it needs to build upon its core competency.</o:p>
What is next for Amazon.com? Bezos is quoted as saying, “The idea is to let people find anything they might want to buy online. Amazon is a ‘Kathryn Store’ or a ‘Jeff Store.’ The notion is that you take the customers and put them at the center of their own universe.”</o:p>
</o:p>Case Study – Evaluate three book sellers business models and Web sites regarding ethical, legal, and security issues.
I need HELP with the following assingment:
1. Case Study Instructions: Where Did You Find that Book?
â?¢ Begin working on the Where Did You Find that Book? Project by reading the Amazon.com Case Study 7-1 of Managing and Using Information Systems and visiting http://www.amazon.com and http://barnesandnoble.com. **Amazon article is attached.**
â?¢ Compare three book sellers: Amazon.com, Barnes & Noble, and a local bookstore in your city. Evaluate their business models and Web sites regarding ethical, legal, and security issues. Also, evaluate how they use communication technologies.
o Define the business models of all three of the bookstores and discuss how all are competing with each other.
o Contrast the Web sites of the three bookstores.
o Discuss how all three of the book stores address ethical, legal, and security issues.
o Identify the communication technologies used by each bookstore.
â?¢ Include appropriate graphics to highlight major points.
â?¢ Format your slides with bullets and use no more than seven sentences per slide.